🗓️Last Updated: June 2026

PM SVANidhi Loan 2026: ₹50,000 for Street Vendors Without Collateral

PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) provides working capital micro-loans to street vendors and hawkers. Start with ₹10,000, repay on time and get ₹20,000, then ₹50,000 — all without collateral. A 7% interest subvention is credited quarterly to the borrower's account. Plus ₹100/month cashback for digital payments.

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Verified by NagrikIQ Research Team
Sources: Official .gov.in portals only · Updated June 2026
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Official Sources
🔗pmsvanidhi.mohua.gov.in — Official Portal →

📋 Overview

PM SVANidhi (PM Street Vendor's AtmaNirbhar Nidhi) was launched on 1 June 2020 to help street vendors who lost their livelihoods during the COVID-19 pandemic resume business. The scheme provides collateral-free working capital loans at affordable rates, helping vendors invest in stock, equipment, and business needs. The loan structure follows a progressive cycle: - 1st Loan: Up to ₹10,000 for 12 months - 2nd Loan: Up to ₹20,000 (after timely repayment of 1st loan) - 3rd Loan: Up to ₹50,000 (after timely repayment of 2nd loan) Interest rate: The scheme provides 7% interest subvention credited quarterly to the borrower's bank account, substantially reducing the effective cost of the loan. Note: borrowers pay the lending institution's rate (which may be higher); the 7% subvention is reimbursed separately — the loan is not zero-interest. Additional benefit: Digital Transaction Incentive — vendors who make digital payments receive a cashback of ₹1 per transaction, up to ₹100/month (₹1,200/year). Over 75 lakh loans have been sanctioned as of 2026. The scheme is managed by the Ministry of Housing and Urban Affairs (MoHUA) and implemented through Urban Local Bodies (ULBs), Microfinance Institutions (MFIs), and banks.

✅ Eligibility

  • ✓Street vendor operating in urban areas as on or before 24 March 2020 (COVID lockdown date)
  • ✓Must possess a Certificate of Vending (CoV) issued by Urban Local Body (ULB), OR
  • ✓Letter of Recommendation (LoR) from ULB/Town Vending Committee (TVC) certifying as a street vendor, OR
  • ✓Identified as a street vendor in the ULB survey conducted as part of Street Vendors (Protection of Livelihood) Act, 2014
  • ✓Vendors not surveyed can still get LoR from ULB/TVC — apply to your Municipal Corporation/Nagar Panchayat
  • ✓Hawkers, vendors with pushcarts, mobile vendors, vendors with stalls/shops on government/public land
  • ✓Vendors in peri-urban or rural areas surrounding cities are also eligible under the scheme
  • ✓Both male and female vendors are eligible — no gender restriction

📁 Documents Required

▸Aadhaar card (for identity and KYC)
▸PAN card (if available — not mandatory for 1st loan if annual income below taxable limit)
▸Certificate of Vending (CoV) issued by ULB, OR Letter of Recommendation (LoR) from ULB/TVC
▸Bank account passbook — account must be in applicant's name and Aadhaar-linked
▸Passport-size photograph
▸Mobile number linked to Aadhaar (for OTP verification and digital payment incentive)
▸If not having CoV/LoR: ULB survey identification number, or apply to ULB directly for LoR
▸Existing vendor ID/hawking licence (if any — helps expedite LoR issuance)

💰Fees & Processing Time

Fee
FREE — No application fee, no processing fee, no collateral required.
Processing Time
After submitting application at pmsvanidhi.mohua.gov.in or through a lending institution (bank/MFI/SHG), the ULB verifies the CoV/LoR within 7–15 days. Loan is typically sanctioned and disbursed within 30 days of application. Digital transaction cashback is credited monthly to the linked bank account.

🖥️ How to Apply Online

  1. 1Visit pmsvanidhi.mohua.gov.in on your mobile or computer
  2. 2Click 'Apply for Loan 10K/20K/50K' as applicable to your loan cycle
  3. 3Enter your mobile number and verify with OTP
  4. 4Enter your Aadhaar number for eKYC verification
  5. 5Fill in personal details: name, address, type of vending, business location
  6. 6Upload your Certificate of Vending (CoV) or Letter of Recommendation (LoR) from ULB
  7. 7Enter bank account details for loan disbursement and digital payment tracking
  8. 8Select a lending institution from the list: bank (SBI, PNB, BoB, etc.), MFI, or SHG
  9. 9Submit the application — you will receive an application reference number
  10. 10Track application status at pmsvanidhi.mohua.gov.in using mobile number
  11. 11Loan is disbursed directly to your bank account after approval
  12. 12Start making digital payments (UPI/QR code) — cashback ₹100/month credited automatically

🏢 How to Apply Offline

  1. 1Visit your nearest ULB (Municipal Corporation / Nagar Panchayat / Nagar Nigam) office to obtain a Letter of Recommendation (LoR) if you don't have a Certificate of Vending
  2. 2Carry Aadhaar card, photograph, and any existing vendor ID or license
  3. 3Visit a participating bank branch (SBI, PNB, BoB, Canara, etc.) or nearby Microfinance Institution (MFI) for loan application
  4. 4The bank/MFI will fill the application form on your behalf using your documents
  5. 5After ULB verification, the loan is sanctioned and credited to your account
  6. 6Use a UPI app (PhonePe, Google Pay, Paytm) linked to your loan account to receive digital payment incentive

⚠️Common Problems & Solutions

✗Don't have a Certificate of Vending (CoV) or Letter of Recommendation (LoR) — how to get it
→Visit your Municipal Corporation / Nagar Panchayat / Nagar Nigam office. Explain that you are a street vendor and need an LoR for PM SVANidhi. Carry your Aadhaar card and any evidence of vending (photographs, old permits, shop establishment proof). The Town Vending Committee (TVC) issues LoRs. If officials are unresponsive, call the SVANidhi helpline 1800-11-6666 for assistance.
✗Loan application rejected by bank — what to do
→Banks can reject if your CIBIL score is very low, account is dormant, or Aadhaar is not linked. Ensure your bank account is active and Aadhaar-linked. Try a different lending institution (MFI or cooperative bank) — they often have more flexible criteria. Under PM SVANidhi, banks are encouraged to lend without standard credit history requirements for street vendors.
✗Digital payment cashback (₹100/month) not received
→Cashback is credited monthly if you have made at least a minimum number of digital transactions. Ensure your bank account used for loan is the same account linked to your UPI app. If cashback is missing for 2+ months, raise a complaint at pmsvanidhi.mohua.gov.in or call the helpline. Ensure your transactions are through UPI/QR code — cash payments don't count.
✗Vendor was not surveyed by ULB and claims no connection — cannot get LoR
→Visit the ULB office and formally apply for inclusion in the survey (under Street Vendors Act 2014). Carry witnesses or other vendors from your area. If ULB still refuses, contact the District Magistrate's office or raise a grievance at pmsvanidhi.mohua.gov.in. The scheme explicitly covers vendors not surveyed — LoR should not be denied on this basis.

❓ Frequently Asked Questions

Q.Can I get a PM SVANidhi loan if I don't have a PAN card?

PAN card is not mandatory for the 1st loan of ₹10,000 if your annual income is below the taxable limit. For higher loan amounts (₹20,000 and ₹50,000), the lending institution may require PAN. You can get a PAN card free of cost online at incometax.gov.in using your Aadhaar.

Q.How is the 7% interest subsidy applied?

The scheme provides 7% interest subvention credited quarterly to the borrower's bank account, substantially reducing the effective cost of the loan. Note: borrowers pay the lending institution's rate (which may be higher); the 7% subvention is reimbursed separately — the loan is not zero-interest. The subsidy is credited only for timely repayments.

Q.Can I repay the loan early and get the 2nd loan faster?

Yes. You can repay the 1st loan (₹10,000) before the 12-month tenure. After full repayment, you become eligible for the 2nd loan (₹20,000) without waiting. Early repayment also helps build your credit history for the next loan cycle. Apply for the 2nd loan at pmsvanidhi.mohua.gov.in after the 1st loan is fully repaid.

Q.Is the scheme available for vendors in rural areas or only urban areas?

PM SVANidhi is primarily for urban street vendors. However, vendors in peri-urban areas (areas adjacent to cities, under ULB jurisdiction) are also eligible. Purely rural vendors are not covered — they may access PM Vishwakarma or MUDRA loans instead.

Q.What happens if I miss an EMI?

Missing EMIs affects your eligibility for the next higher loan cycle. The 7% interest subsidy is given only for timely repayments — missed EMIs reduce your subsidy benefit. It also affects your credit score. Contact your lending institution immediately if you face repayment difficulty — they can restructure the loan under RBI guidelines.

📞Helpline & Support

  • ▸PM SVANidhi Helpline: 1800-11-6666 (toll-free)
  • ▸MoHUA Helpline: 011-23063285
  • ▸Official Portal: pmsvanidhi.mohua.gov.in
  • ▸Grievance: pgportal.gov.in
  • ▸ULB Contact: Contact your Municipal Corporation / Nagar Panchayat for LoR
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